Online used electric car dealer

Private buyers looking for a cheaper way into electric driving, and trade customers such as other dealers or small fleets.

The margin between what you pay for a car, including checks and reconditioning, and your sale price. Some dealers also earn fees on financing or warranty referrals, where allowed.

• Knowing used EV models, battery health and charging
• Negotiating and pricing
• Online listings and photography
• Honest customer service

• Most provinces require used vehicle dealers to be licensed, and some have rules on the type of premises, so check before buying stock
• Garage liability and inventory insurance, plus commercial general liability
• Battery condition is the biggest value risk, so get a proper state-of-health report on every car
• Disclosure rules, lien checks and history reports to protect you and your buyers
• GST/HST or provincial sales tax on dealer sales, and cold-weather range questions from buyers
• Cash tied up in stock if cars sit unsold, since used EVs often cost tens of thousands of dollars each and the budget needs to cover licensing, bonding, insurance and secure parking as well as a few cars

Startup costs are typically around $80,000 to $250,000, depending on how many cars you buy, plus licensing, bonding, insurance and secure parking. Treat this as an estimate and budget for stock that may sit unsold.

Monthly revenue is typically around $15,000 to $70,000, depending on how many cars you sell and their prices. This is revenue rather than profit, and cash can be tied up in stock if cars sit unsold.

Most provinces require used vehicle dealers to be licensed, and some have rules on premises, so check before buying stock. Also check garage liability and inventory insurance, disclosure rules, lien checks and history reports, and GST/HST or provincial sales tax on dealer sales.